[blhack]

PDAnet works wonderfully for me. It's free, and it's really simple to set up.

Install it, then create an ad hoc network on your computer.

When you launch PDAnet, it's going to scan for available ad hocs; select the one you just created.

At least on my apple machine, as soon as I connect, my box recognizes that the iPhone can be used as a gateway to the internet.

Very slick :)

[WiseWeasel]

Note that PDAnet is actually trialware, and the full SOCKS proxy functionality is only free for 14 days. After that, you just get port 80 forwarded, so nothing beyond HTTP will work on tethered devices.

[blhack]

I believe you're thinking of iPhonemodem (or something like that?)...

I cannot find anything on pdanet that is asking me for money (this is why I uninstalled iphonemodem)

[WiseWeasel]

Nope, I'm talking about PDAnet. Check out their FAQ:

http://www.junefabrics.com/iphone/faq.php